Updates, advisories and surprises

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Friday, August 30

Hain Celestial meets Q4 view; sees Q1 below est. (1:41 PM ET) Hain Celestial
HAIN, +0.36%
is off 98 cents, or 6.3 percent, to $14.60, in late action. After Thursday's closing bell, the Melville, N.Y., natural and organic food firm reported fourth-quarter earnings before items of 11 cents a share, in line with the average estimate of analysts polled by Thomson Financial/First Call. Including $21.3 million in charges related to the sale of a facility in California, and the discontinuation of its supplements business and Weight Watchers' license, the company lost $12.8 million, or 38 cents a share, in the latest three months. Sales rose 21 percent in the latest three months to $95.4 million from $79.1 million in the same period a year earlier. Hain also reaffirmed its outlook for earnings of 78 to 84 cents a share on revenue of $450 million to $470 million in fiscal 2003. However, for the first quarter, the company forecast earnings of 14 to 17 cents a share, below Wall Street's current consensus estimate for a profit of 20 cents a share.

Strong Q2 results send CSK Auto shares higher (12:52 PM ET) CSK Auto
CSK, -7.84%
is tacking on 62 cents, or 3.1 percent, to $20.67, after the company reported second-quarter earnings before items of $8.8 million, or 21 cents a share, 2 cents ahead of its own previously disclosed projection. Sales rose 4.3 percent in the latest three months to $398.3 million from $381.7 million in the same period a year earlier. Same-store sales rose by 7 percent. Looking ahead, CSK expects earnings before items of $29 million to $31 million in fiscal 2002, and same-store sales growth in the mid-single digit range for the remainder of the year.

Euronext surprises on the upside (2:32 AM ET) Euronext, the pan-European stock exchange, on Thursday reported a stronger-than-expected set of first-half results, with surging revenue figures and a decrease in expenditure. The platform, formed less than two years ago by the merger of the Amsterdam, Brussels and Paris cash and derivatives exchanges, reported a 41.2 per cent increase in pre-tax profits to €192.80m for the first six months of the current trading year. Revenues were 6.8 per cent higher at €491.10m while EBIT jumped 52.6 per cent to €127.77m. Total expenditure decreased by 3.4 per cent year-on-year to €363.55m. Euronext said cost items fell across the board except for staff spending but it added that the headcount will have reduced significantly by the end of this year.

Thursday, August 29

Novellus sees Q3 breakeven earns, $230m in revenue (4:49 PM ET) Novellus Systems
NVLS, +1.14%
lowered its third quarter financial targets during a scheduled midquarter update, but the chip equipment firm does not expect to post a loss during the quarter. CEO Rick Hill said a recent consumer spending slowdown has more than offset a slight uptick he has seen in corporate spending on information technology.

Bristol-Myers says SEC inquiry becomes formal probe (3:18 PM ET) Shares of Bristol-Myers fell 4 percent in afternoon trading Thursday after the drugmaker said an ongoing Securities and Exchange Commission probe had become a formal investigation. The SEC is looking into possible accounting irregularities associated with the overstocking of inventory at drug wholesalers. Bristol said it'll cooperate with the probe. Shares of Bristol-Myers
BMY, +0.67%
slid $1 to $24.06.

Apollo Group gets boost from FY03 outlook (1:22 PM ET) Apollo Group
APOL, +0.05%
is surging $3.42, or 8.9 percent, to $41.84, after the operator of higher education programs provided a bullish outlook for the first quarter and fiscal 2003. Shares of University of Phoenix Online
UOPX
a publicly traded unit of Apollo, is also gaining ground, rising $3.25, or 12.9 percent, to $28.40. Apollo sees revenue of between $290 million to $292 million in the first quarter, and $1.28 billion from $1.285 billion in fiscal 2003. University of Phoenix Online forecast revenue of $100 million to $101 million for the first quarter, and $490 million to $495 million for the year. Earnings attributed to Apollo Group are projected at 23 cents a share for the first quarter, and $1.06 per share for fiscal 2003, while the U of P Online is expected to post earnings of 13 cents and 74 cents for the respective periods. The company said the projections for the first quarter are consistent with current Wall Street views.

Ashworth sees Q4 earnings below consensus (12:42 PM ET) Ashworth
ASHW
is down 40 cents, or 7.4 percent, to $4.97, after the Carlsbad, Calif., designer of sportswear and golf apparel reported a third-quarter loss of $573,000, or 4 cents a share, down from its year-ago profit of $615,000, or 5 cents a share. Excluding a $4.25 million increase in the reserve for bad debts, the company would have earned $2 million, or 15 cents a share. Four analysts polled by Thomson Financial/First Call were looking for a loss of 3 cents a share in the period on average. Revenue rose 20.5 percent in the latest three months to $35.9 million. Looking ahead, Ashworth sees earnings of 3 to 5 cents a share in the fourth quarter, below Wall Street's current consensus estimate for a profit of 6 cents a share.

Michaels Stores gets a lift from Q2 results (12:05 PM ET) Michaels Stores
MIK, -1.09%
is up $3.84, or 9.7 percent, to $43.59, in midday trades. After Wednesday's closing bell, the Irving, Texas, arts and crafts retailer reported second-quarter earnings of $21.5 million, or 23 cents a share, up from its year-ago profit of $4.7 million, or 7 cents a share, and 11 cents better than the average estimate of analysts polled by Thomson Financial/First Call. Sales jumped 19 percent in the latest three months to $576.6 million from $486.1 million in the same period a year earlier. The company also said that August sales are coming in much stronger than expected, and that same-store sales are projected to rise 5 to 6 percent in the month, well above its previous outlook for a flat performance.

Liberate issues warning on Q1 pro forma results (11:47 AM ET) Liberate Technologies
LBRT, +2.75%
is down 28 cents, or 13.3 percent, to $1.83, after the San Carlos, Calif., provider of digital media technology said it expects pro forma loss of 12 to 19 cents a share on revenue of $12 million to $14 million for the first quarter, below a previous outlook for a loss of 6 to 8 cents a share on revenue of $20 million to $22 million. The company said the change reflects the impact of financial restructuring and lower capital spending in the cable and telecommunications sectors. Liberate is maintaining its view that it will reach pro forma profitability in the second half of fiscal 2003.

Footstar sees Q3 earnings well below views (11:06 AM ET) Footstar
FTS, +0.68%
is down $2.27, or 16.8 percent, to $11.28, after the West Nyack, N.Y., footwear retailer lowered its outlook for third-quarter earnings due to weak sales at its Footaction locations. The company now sees a profit of between 55 to 60 cents a share in the quarter, well below the average estimate of analysts polled by Thomson Financial/First Call for a profit of 97 cents a share. The company said that same-store sales fell 5.1 percent in August, and total sales for the four weeks ended August 24 slumped 10.7 percent to $225.7 million from $252.7 million in the same period a year earlier.

West Marine to meet or exceed Q3 profit estimate (9:55 AM ET) West Marine
WMAR, -0.32%
is up 35 cents, or 2.9 percent, to $12.35, after the Watsonville, Calif., boating supplies retailer said it expects to meet or exceed Wall Street's consensus estimate for earnings of 34 cents a share in the third quarter. The comment came as the company reported August sales of $46.8 million, up 3.3 percent from its total of $45.3 million in the same period a year earlier. Same-store sales for the four weeks ended August 24 slipped 0.3 percent.

Chico's FAS gains on in-line Q2 results (9:44 AM ET) Chico's FAS
CHS, -0.97%
is adding 32 cents, or 2.1 percent, to $15.40, after the Fort Myers, Fla., women's casual clothing retailer reported second-quarter earnings of $16.4 million, or 19 cents a share, up from its year-ago profit of $11.1 million, or 13 cents a share, and in line with Wall Street's consensus estimate. Sales jumped 39.8 percent to $125.1 million in the latest three months from $89.5 million in the same period a year earlier. Same-store sales at company-owned stores rose 11.6 percent in the quarter.

Finish Line sees Q2 earnings below previous view (9:27 AM ET) Finish Line
FINL, -0.94%
is lowering its outlook for the second quarter to earnings of 34 to 36 cents a share from its previous outlook for a profit of 45 to 47 cents a share. The Indianapolis athletic footwear and apparel retailer cited decreased sales, significant margin pressure due to a very promotional retail environment, and negative leverage on selling, general and administrative expenses for the shortfall. Sales are projected in the range of $203 million to $205 million for the second quarter, and same-store sales are pegged at flat to up 1 percent. The company also forecast a loss of 11 to 13 cents a share for the third quarter, and earnings of 72 to 76 cents a share for the year. Wall Street's current consensus estimates for the periods are for a loss of 8 cents and earnings of 93 cents per share, respectively.

Dress Barn August same-store sales fell 2 percent (9:15 AM ET) The Dress Barn
ASNA, -0.99%
is reporting August same-store sales fell 2 percent. Total sales for the month ended August 24 jumped 4 percent to $49.5 million from $47.7 million in the same period a year earlier. The stock closed Wednesday at $12.75, down 3.8 percent.

Roadway sees revenue/tonnage levels below views (9:06 AM ET) Roadway Corp.
ROAD, +0.00%
is saying that it has experienced tonnage and revenue levels that are "slightly below internal projections" due to a slower than expected economic recovery. For the third quarter, the Akron, Ohio, transportation services firm sees earnings coming in 10 to 20 percent better than its second-quarter earnings of 30 cents per share. Analysts polled by Thomson Financial/First Call are currently looking for earnings of 52 cents a share in the period. The stock closed Wednesday at $26.93, off 2.3 percent.

Bio-Technology General gets delisting notice (8:50 AM ET) Bio-Technology General said Thursday it's been notified by Nasdaq that the company's shares are subject to delisting. Bio-Technology General plans to appeal, which will delay delisting. Bio-Technology said it was in violation of a rule requiring independent auditors to review its financial statements. The biotech firm had switched auditors from the collapsed Arthur Andersen to KPMG. The company said it's "working diligently with KPMG to complete the reaudit." The company's ticker symbol changes to BTGCE from BTGC effective immediately. Ahead of the news, shares
BTGC
slipped 10 cents to $3.83.

Dillard's tops in Q2 by a penny (8:49 AM ET) Dillard's
DDS, -0.32%
is reporting second-quarter earnings before items of $12.5 million, or 15 cents a share, a penny ahead of the average estimate of analysts polled by Thomson Financial/First Call. Sales totaled $1.82 billion for the quarter, slightly below $1.83 billion in the same period a year earlier. Same-store sales were flat for the period. The stock closed Wednesday at $26.94, up 0.4 percent.

Deb Shops posts Q2 net of $7.,3M (8:31 AM ET) Deb Shops
DEBS
is reporting second-quarter earnings of $7.3 million, or 52 cents a share, up from its year-ago profit of $5.8 million, or 42 cents a share. Two analysts polled by Thomson Financial/First Call were looking for a profit of 45 cents a share on average. Sales rose 5.8 percent in the latest three months to $76.7 million from $72.5 million in the same period a year earlier. Looking ahead, Deb Shops sees August sales in the "low negative single digits." The stock closed Wednesday at $27.50, up 0.9 percent.

Zale's Q4 EPS outsparkle estimates by a penny (7:18 AM ET) Zale
ZLC, +0.00%
beat analyst forecasts by a penny per share on a 67 percent jump in fourth-quarter earnings, before items. Net Income before items was $5.1 million, ro 15 cents per share, versus $3 million, or 9 cents per share in the year-ago period. The jewelry retailer beat the forecast of 14 cents per share in a survey of analysts by Thomson Financial/First Call. Including unusual items, related to severance and other benefit payments in conjunction with executive management changes, net earnings were $3.7 million or 11 cents per share. Revenue was $435.6 million, up from $422 million. Same-store sales increased 2 percent. The company reiterated its fiscal 2003 target of a one to two percent same store sales increase and earnings growth in the 10 to 12 percent range. Its plans include opening 30 new stores and 30 kiosks. Shares of Zale fell 66 cents to $29.14 on Wednesday ahead of the report.

Stewart & Stevenson's Q2 earn, rev. decline (6:52 AM ET) Stewart & Stevenson
SSSS
reported fiscal second quarter earnings and revenue that declined from year-earlier levels given that certain large power generation projects in the previous year were not replicated. The company also announced the sale of a portion of its petroleum equipment business to Cooper Cameron
CAM, +0.00%
for $14.75 million. Net earnings from continuing operations were $4.6 million, or 16 cents a share, down from last year's $12.3 million, or 42 cents a share. Including discontinued operations, the company lost $6.4 million, or 22 cents a share. Sales fell 25 percent to $278.8 million. There was no consensus analyst estimate available from Thomson Financial/First Call. The stock closed Wednesday down 23 cents at $13.15.

Krispy Kreme tops Wall Street earns est. by a penny (6:17 AM ET) Krispy Kreme
KKD
reported fiscal second quarter earnings that topped the consensus analyst forecast and indicated that full-year results would also exceed expectations. Net income for the quarter ending July was $8.9 million, or 15 cents a share, up from $5.9 million, or 10 cents a share in the same period a year ago. Analysts polled by Thomson Financial/First Call were expecting earnings of 14 cents a share, on average. Systemwide sales for the period rose 29.5 percent over last year to $186.9 million, and comparable-store sales increased 12.8 percent. For the year, the doughnut retailer said it now expects earnings of 64 cents a share, a penny above analyst expectations, and same-store sales growth of 10 percent. The company also raised its forecast for store openings to 64 from 62. The stock closed Wednesday up 35 cents at $36.36.

Wednesday, August 28

Province Healthcare decline unwarranted: Merrill (12:39 PM ET) Province Healthcare
PRV, -0.06%
is sliding $1.47, or 8.1 percent, to $16.58, adding to Tuesday's 4.1 percent slide. Merrill Lynch analyst A.J. Rice said the stock's weakness was unwarranted, as he believes the company's third quarter "is off to a strong start." Separately, the health care services reiterated its third quarter earnings forecast. The company said in February that it expected to earn 19 cents a share for the current quarter.

Champps slumps on Q1, 2003 outlook (10:23 AM ET) Champps Entertainment
CMPP, -9.30%
is getting knocked $1.82, or 20 percent lower, to $7.29 after the restaurant operator reported fiscal fourth quarter earnings that matched expectations but indicated that fiscal first quarter and 2003 result would fall short due to an uncertain economic outlook. For the fourth quarter, the company earned 15 cents a share, up from 3 cents a share in the year-earlier period. Total sales rose 27 percent to $41.9 million, but same-store sales dropped 1 percent. The company expects to earn 7 to 8 cents a share in the quarter ending September and 64 to 68 cents a share for the full fiscal year, while analysts surveyed by Thomson Financial/First Call are currently anticipating earnings of 12 cents and 71 cents a share, on average.

H-P shares rise following earnings (10:14 AM ET) Shares of Hewlett Packard
HPQ, -0.77%
rose 19 cents to $14.40 in early Wednesday trading, a day after the leading PC and printer maker matched its third-quarter earnings target, before taking about $3 billion in write-downs. The company kept its second-half earnings and sales goals intact. In its first earnings report to include results from the acquisition of Compaq in May, H-P reported earnings before charges of $424.6 million, or 14 cents a share, vs. 11 cents per share, or $330.4 million, if it and Compaq had been combined in the same period last year.

UBS Warburg lowers EPS target for HPQ (8:31 AM ET) UBS Warburg analyst Don Young said trimmed profit targets for Hewlett Packard
HPQ, -0.77%
after the company posted quarterly results. He noted Hewlett-Packard's earnings came in below the company's June meeting guidance, but the reported EPS and new outlook were in line with Wall Street expectations. "The composition of earnings was even more polarized then expected -- imaging operations reported record profitability while almost everything else were weaker then forecasted," he said in a note to clients. He reduced his EPS estimate for the fourth quarter to 22 cents per share, from 25 cents, and 2003 EPS estimate to $1.17 from $1.29. Shares of Hewlett Packard traded at $14.38 in Wednesday's pre-open, up from their $14.21 close.

Tuesday, August 27

Semtech in dispute with customer; announces Q2 results (5:14 PM ET) Semtech
SMTC, +0.00%
is working with an unnamed customer to resolve a dispute about damages that could total $115 million. Semtech said it is cooperating fully but that subsequent tests indicate its products function reliably. The two parties are discussing whether Semtech's integrated circuits caused failures in the customer's products. Separately, Semtech announced second-quarter financial results.

Altera holds Q3 sales target steady (4:41 PM ET) Altera
ALTR, -1.39%
said it still expects third-quarter sales to be flat or up 2 percent from the previous quarter. Also, its Stratix device family continues to gain acceptance and design wins, according to a scheduled midquarter update.

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